China Intensifies Investments in Cuba as US Foreign Relations Cool

In the 19th century, a sizable Chinese population left and migrated to Cuba. Prieto said that this migration has left a significant effect on the development of the Cuban nation. (Photo : Getty Images)

China is increasing its stakes in former socialist Cuba and plans to take the scene from the United States.

The number of Chinese investments in Cuba has been on an uphill trajectory. Apart from constructing a golf resort worth $500 million, China has been deeply involved in the Cuban socialist economy.

The influx of Chinese products was worth $1.9 billion in 2015 and slightly dipped to $1.8 million in 2016 due to the political and economic unrest in Venezuela.

China is now the second largest importer to Cuba. In Cuba's Mariel Special Development Zone, 19 companies which are poised to invest are Chinese. These companies are investing in telecommunications, infrastructure, tourism and electronics.

A Chinese trader commented on Cuba and said, "Business is really booming, more than we could have ever imagined."

The Chinese foreign ministry described Cuba as "good comrades, brothers, and partners." They claim that the relations are not influenced by a third party.

Chinese foreign ministry spokesperson Geng Shuang said, "We are happy to see that recently countries around the world are all expanding cooperation with Cuba. I think this shows that all countries have consistent expectations about Cuba's vast potential for development."

However, the tightening of relations between China and Cuba puts American companies in the dark and will leave current President Donald Trump in a less favorable trade position.

The increase of China's businesses might leave President Trump in a stump when he implements a trade embargo. The tension between China and the U.S. might lead to China intensifying trade with American allies.

According to Ted Piccone, a Latin America analyst at the Brookings Institution, "if and when the Trump administration increases pressure on China . . . China may decide to double down on its expanding footprint in the United States' neighborhood."

Emilio Morales, President and CEO of The Havana Consulting Group and Tech, observed that President Trump will arrange for a "better" agreement with Cuba and will wait for the country to "move ahead with measures that will benefit the Cuban people."